Centre's Holi Bonanza: 6% DA hike for employees and pensioners

New Delhi: Modi government has given another reason to central government employees to celebrate Holi. The union cabinet today approved 6% hike in dearness allowance for central government employees and pensioners. With this move, the

India TV Business Desk [ Updated: March 23, 2016 14:47 IST ]

DA Hike

New Delhi: Modi government has given another reason to central government employees to celebrate Holi. The union cabinet today approved 6% hike in dearness allowance for central government employees and pensioners.

With this move, the DA will go up to 125% from existing 119%, benefiting over 10 million employees and pensioners.

The new rate of DA will be implemented from January 1, 2016, which will be applicable for 4.8 million central government employees and 5.5 million pensioners. DA is paid as a proportion of basic pay of employees.

The proposal to hike DA is moved by the Finance Ministry on the basis of accepted formula for calculation. The Union Cabinet approves the DA hike for its employees.

The Centre revised DA twice in a year on the basis of one year average of retail inflation for industrial workers as per the accepted formula.

Earlier in September last year, DA was increased to 119 percent from 113 percent which was effective from July 1, 2015. In April last year, the government had hiked DA by 6 percentage points to 113 percent of their basic pay with effect from January 1, 2015.